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  "path": "/money/britons-given-new-protections-buy-now-pay-later",
  "publishedAt": "2026-02-11T00:01:05.000Z",
  "site": "https://www.gbnews.com",
  "tags": [
    "State pension age to rise for Britons aged under 66 in phased DWP rollout - are you affected?",
    "TV licence SLAMMED as BBC fee to 'be more expensive than Netflix' - how much will you pay?",
    "UK retail sales jump in January as shoppers return to stores following 'drab December'",
    "The GB News Editorial Charter"
  ],
  "textContent": "\n\n\nBuy Now Pay Later (BNPL) customers will gain new regulatory protections from July after the Financial Conduct Authority (FCA) confirmed the sector will move under its formal oversight.\n\nThe changes follow the Government’s decision to regulate the sector and will bring BNPL products under the FCA’s Consumer Duty framework.\n\n###\n\n\n\n\nUnder the new rules, lenders will be required to carry out proportionate affordability checks before offering credit to customers.\n\nConsumers will also receive clearer upfront information about agreements, including payment schedules and the consequences of missed instalments.\n\n###\n\n\n\n\nTRENDING\n\nStories\n\nVideos\n\nYour Say\n\n###\n\n\n\n\nCustomers experiencing financial difficulty will be entitled to support from lenders, who will also be required to direct borrowers to free debt advice where appropriate.\n\nFor the first time, Buy Now Pay Later users will be able to escalate complaints to the Financial Ombudsman Service if disputes cannot be resolved directly with lenders.\n\nThe FCA said the rules are expected to protect around 11 million people who currently use Buy Now Pay Later products across the UK.\n\nThe regulatory changes come as use of the payment method has expanded rapidly across the country.\n\nData from UK Finance shows the proportion of adults using Buy Now Pay Later increased from 14 per cent to 25 per cent in 12 months.\n\n###\n\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nThe payment method is now widely available across online retail checkouts and increasingly in physical stores, allowing customers to spread payments across several instalments that are typically interest free.\n\nHowever, concerns have grown about unaffordable borrowing as usage has increased.\n\nFigures shared with ITV News showed more than £33million of Buy Now Pay Later debt was written off during the past year, representing a 73 per cent increase compared with the previous 12 months.\n\nThere's previously been no formal regulatory protections for consumers who repeatedly use Buy Now Pay Later and struggle to repay.\n\nSarah Pritchard, deputy chief executive at the FCA, said: \"We want the Buy Now Pay Later sector to thrive – it provides an important source of credit to many and we will continue to support firms who want to develop innovative new products.\n\n### LATEST DEVELOPMENTS\n\n\n\n\n  * State pension age to rise for Britons aged under 66 in phased DWP rollout - are you affected?\n  * TV licence SLAMMED as BBC fee to 'be more expensive than Netflix' - how much will you pay?\n  * UK retail sales jump in January as shoppers return to stores following 'drab December'\n\n\n\n###\n\n\n\n\n###\n\n\n\n\n\"But crucially, no one should be lent to if they're unable to repay because that could worsen their financial situation.\n\n\"Now parliament has given us the powers, we're putting in place proportionate protections for the 11 million people who use it.\"\n\nFirms offering BNPL products will need to secure FCA authorisation in order to continue operating in the UK market.\n\nThe regulator said it will provide pre-application support to help firms prepare for the new requirements.\n\nThe FCA said repeat users who cannot afford repayments currently have limited formal protection under existing arrangements.\n\nDamien Burke, head of regulatory practice at Broadstone, said: \"The Buy Now Pay Later market has expanded substantially and is now a core part of the UK consumer credit market, particularly for younger borrowers.\n\n###\n\n\n\n\n###\n\n\n\n\n\"Many of whom have found access to short term credit like overdrafts more expensive or harder to access since the High-Cost of Credit Review.\n\n\"FCA consumer protections were an inevitable next step for a market that has had minimal formal regulation or oversight.\"\n\nMr Burke said applying the Consumer Duty framework is expected to improve outcomes through clearer disclosures and proportionate affordability checks.\n\nHe described the regulatory changes as a \"regulatory reset\" aimed at ensuring borrowers understand risks and repayment obligations for a product often marketed as a budgeting tool rather than credit.\n\nLenders will face implementation challenges as they adapt systems and underwriting processes while attempting to maintain the streamlined customer experience that helped drive the growth of Buy Now Pay Later services.\n\nDebt advice charities have reported an increase in consumers seeking help with Buy Now Pay Later repayments.\n\n###\n\n\n\n\n###\n\n\n\n\nResearch from Money Wellness found 60 per cent of customers seeking help with Buy Now Pay Later debts are classed as vulnerable.\n\nMore than half of those customers were also behind on essential household bills including council tax, gas, electricity or water payments.\n\nSome campaigners have argued the incoming rules do not go far enough to limit borrowing risks.\n\nMick McAteer, from the Financial Inclusion Centre, told ITV News the regulation \"won't address the issue of making it too easy to borrow and too easy to spend.\"\n\nHe said the rules would not prevent Buy Now Pay Later firms from targeting consumers through retailers and social media platforms.\n\nA Treasury spokesperson said advertisements must already make clear that Buy Now Pay Later products represent a form of credit.\n\n###\n\n\n\n\n\n\n\n\n\n\n**Our Standards:The GB News Editorial Charter **",
  "title": "Britons given new Buy now Pay Later protections after £33million of debt written off"
}